New Delhi: Ajay Singh, Chairman and Managing Director of SpiceJet, on Wednesday welcomed the government’s decision to implement only a partial increase in Aviation Turbine Fuel (ATF) prices, calling it a significant relief for the aviation industry.
The decision comes at a time when airlines are grappling with rising operational challenges and global uncertainties. Singh said that limiting the hike would help ease financial pressure on carriers already dealing with elevated costs.
According to K. Rammohan Naidu, public sector oil marketing companies under the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, have decided to introduce a staggered increase of 25 per cent or ₹15 per litre for domestic airlines.
The move is seen as a balanced approach to managing fuel price adjustments without severely impacting airline operations.
Airlines are currently facing additional strain due to airspace restrictions in the West Asia region amid ongoing conflict. These restrictions have forced carriers to opt for longer flight routes, leading to increased fuel consumption and higher operating costs.
Industry experts believe that the partial hike could provide temporary stability to airlines while they navigate geopolitical challenges and fluctuating fuel prices.
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